PFC to acquire 52.63% stake in REC
22nd Mar 2019

Power Finance Corporation (PFC) has signed a share purchase agreement to acquire 103.94 crore equity shares of Rs 10 each of REC from the President of India constituting 52.63% of the paid-up share capital of REC. This is a major milestone achieved by PFC, who is now slated to become a promoter and the holding company of REC.

The acquisition would enable increased efficiencies in lending processes and policies across both the institutions and would create public value by offering better loan products to the power sector. The convergence between the entities as combined group entities would help the power sector reap benefits from a decentralized outreach of REC and a professional project finance expertise of PFC.

PFC provides large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, and consultancy services for various power projects in generation, transmission, distribution sector as well as for renovation and modernization of existing power projects.